The average time to close a mortgage has decreased from the fourth straight time to 51 days, according to a new study ICE-Hypothekentechnologie.
The study, ICE’s Origination Insight Report, also found April was the second straight month that the share of refinances in total origins slowed, down from 63% in March to 56%. The percentage of purchase mortgages rose to 43% of total closed loans. This is the highest percentage since August 2020 and increased sequentially from 36% in March.
The data for the study was derived from approximately 80% of all mortgage applications initiated on ICEsIncludePlatform.
The average interest rate on all loans was 3.22% in April, down from 2.99% in March. The average interest rate on all loans in April 2020 was 3.48%.
Joe Tyrrell, ICE president, said the latest results are in line with the company’s 2020 survey of borrowers and lenders, which found that digital mortgage technologies make closing a mortgage loan “faster and easier”.
“The reduction in average time to close isn’t surprising given the increases we’ve seen in adopting digital transformation tools like AIQ – our artificial intelligence offering that automates workflows to move to a more data-driven process – and customer loyalty suite to automate communications with everyone involved in the transaction, ”said Tyrrell.
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ICE reported an overall completion rate of 78% in April, with the amount of FICO scores for first-time lean loans standing at 747. ICE found that conventional loans accounted for 81% of originations in April, while FHA loans were 10% and VA loans were only 6%.
Purchase mortgages took an average of 49 days to complete in April. This is better than the 51 days in March, but worse than the 48 days in October 2020 and the 46 days a year ago in April 2020.
Loan officers and mortgage managers have told HousingWire that long lead times with appraisers, inspectors, and other elements of the home buying process have contributed significantly to such delays, more than general lender capacity issues.
ICE acquired Ellie Mae for $ 11 billion in 2020 and has been a major player in mortgage technology for the past five years – particularly in mergers and acquisitions. The company acquired a majority stake inMERSCORP Holdings, The owner ofElectronic registration of mortgages Systemin 2016 and bought the remaining stake two years later. ICE also acquiredEasyin 2019 for $ 335 million.
The post office lenders who quickened the pace of closing mortgages first appeared on HousingWire.
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